Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurement [Abstract]

Assets measured at fair value

Assets measured at fair value are summarized below.

	Fair Value Measurements at September 30, 2012 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	52,863	$	—
Obligations of states and political subdivisions		—		79,210		476
Mortgage-backed securities in government sponsored entities		—		77,339		—
Equity securities in financial institutions		—		456		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	25,506
Other real estate owned		—		—		464
	Fair Value Measurements at December 31, 2011 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	49,704	$	—
Obligations of states and political subdivisions		—		66,219		517
Mortgage-backed securities in government sponsored entities		—		87,518		—
Equity securities in financial institutions		676		—		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	22,569
Other real estate owned		—		—		1,097

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2012.

	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2012	Fair Value Estimate		Valuation Technique	Unobservable Input	Range
Investments	$	476	Appraisal of collateral	Appraisal adjustments	20% - 30%
				Liquidation expense	8% - 12%
Impaired loans	$	25,506	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	3% - 8.4%
Other real estate owned	$	464	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%

Summary of changes in the Level 3 fair-value category in securities available for sale

The following table presents the changes in the Level 3 fair-value category for the period ended September 31, 2012. The Corporation classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to the unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.

Securities available for sale
Beginning balance January 1, 2012	$	517
Principal payments		(41	)
Ending balance September 31, 2012	$	476

Carrying amount and fair values of financial instruments

					Quoted
					Prices in
					Active		Significant		Significant
					Markets for		Other		Other
					Identical		Observable		Unobservable
September 30, 2012	Carrying		Total		Assets		Inputs		Inputs
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	38,861	$	38,861	$	38,861	$	—	$	—
Securities available for sale		200,733		210,344		—		209,868		476
Other securities		15,573		15,573		15,573		—		—
Loans, available for sale		749		749		749		—		—
Loans, net of allowance for loan losses		781,183		796,918		—		—		796,918
Bank owned life insurance		18,439		18,439		18,439		—		—
Accrued interest receivable		4,709		4,709		4,709		—		—
Financial Liabilities:
Nonmaturing deposits		644,430		644,430		644,430		—		—
Time deposits		270,807		273,037		—		—		273,037
Federal Home Loan Bank advances		40,270		41,816		—		—		41,816
Securities sold under agreement to repurchase		20,525		20,525		20,525		—		—
Subordinated debentures		29,427		27,360		—		—		27,360
Accrued interest payable		232		232		232		—		—

	December 31, 2011
	Carrying Amount		Fair Value
Financial Assets:
Cash and due from financial institutions	$	52,127	$	52,127
Securities, AFS		196,357		204,633
Other securities		15,388		15,388
Loans, available for sale		598		598
Loans, net of allowance for loan losses		764,011		785,900
Bank owned life insurance		17,963		17,963
Accrued interest receivable		3,787		3,787
Financial Liabilities:
Deposits		901,246		911,945
Federal Home Loan Bank advances		50,295		52,263
Securities sold under agreement to repurchase		19,029		19,029
Subordinated debentures		29,427		26,461
Accrued interest payable		258		258